Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $54.4 million loan refinancing for Parkview Towers, a 688-unit apartment community in West New York, New Jersey that was the first ever project-based Section 8 property approved by the state.
Love Funding Senior Vice President and Senior Loan Originator Laura Saull-Smith secured the loan through the U.S. Department of Housing and Urban Development’s 223(f) loan program. Utilizing the program enabled the borrower, Parkview Towers L.L.C., to preserve the property’s affordable housing status and finance needed repairs, reserves and upgrades totaling in excess of $7 million, or more than $10,000 per unit.
“The long-term, fully amortizing, non-recourse financing that the FHA 223(f) program permits enables owners to save substantial amounts in annual debt service costs, particularly in this historically low rate environment,” said Saull-Smith. “Repairs, reserves and closing costs can usually be funded out of loan proceeds.”
Parkview Towers was built in 1974 and has 684 units that qualify for a federal rent subsidy pursuant to Section 8 of the U.S. Housing Act of 1973. As part of the refinancing, the owners committed to add 20 more years onto the existing Section 8 contract, allowing residents there to enjoy subsidized rents until the property’s maximum allowable term expires in 2031.
“We are dedicated to preserving Parkview Towers’ vital role as a high-quality, affordable housing option in the New York metropolitan area,” said Lisa D’Alessandro, one of the property’s owners and senior vice president of Parkview Management Corp. “This refinance will help ensure that our residents are able to maintain the quality of life the property has provided for more than 30 years.”
For more information, contact Laura Saull-Smith.